No insight or whatever on the close. Why - I no longer position trade ES due to the shocking nature of the news events and the widened range, thus I do not spend time on weekly projections at all.
Money, schmoney... By the way, yesterday we bottomed with the dragon pattern, height was 7 pts: Also note how nicely the SMA 9 keeps one long between 1 and 3 pm...
I only know how to read charts. Everything else is greek to me. But if what you say is true, then why was ES trading at hefty premium (and it was pretty damn wide) when the general market was tanking in October?
Tomorrow I am going to meet someone, who could stop this rally. He always lies about fishing though...
OK thanks. I see the close as very clearly indicating we go up or down or sideways next week. (admit bias short term bull.) But gotta see how she goes. Agree, news could affect.
As I said it has to do with interest rates. Rates were much higher in October, and the higher the interest rates are the higher the premium is to fair value. My basic point is that you donât have to worry about it. I know daytraders like to keep things simple so the current fair value can be seen on the site I posted if you are interested but you donât have to think about the actual level because it shouldnât affect your trading. Some try to use the current spread between the ES and SPX to gauge one thing or another but that is usually superfluous to your trading. Since you mentioned greeks, option traders need to be very well aware of them, but the most import thing about them (which is that they are, at best, guesstimates) is something lost on many new traders. Just another example of trying to read too much into something. As a daytrader in the ES you have two choices, go long or go short, then you cover â there is nothing else to it. So being a good chart reader is your grail, you donât need all the extraneous things crazy swing/option traders like me use.
This has been discussed rather poorly in other threads and is somewhat confusing. The es mini contract is 1/5 of spx which is pit traded by locals and in size by institutions. Lets assume that es mini, spx, and spy expire monday and there is no interest or dividends to contend with, how would a trader allocate $100,000 long in a portfolio? In other words how are they equivalent on a dollar or tick basis?
Well, you still need to know when to get in and when to get out but very well stated. Ya can't get any more simpler than that!